Sears issues sober fourth-quarter outlook
Sears announced declines in comparable-store sales for both its Sears and Kmart stores for the nine-week period ended Jan. 5, and offered sober guidance for the upcoming quarter.
Sears domestic saw a 2.8 percent decline during the months of November and December, while Kmart’s comparable-store sales declined 4.2 percent for the period. Total domestic comparable-stores sales declined 3.5 percent for the nine-week period, the company said.
The most notable declines occurred in the Sears apparel and tools categories and the Kmart seasonal categories. The company attributed the declines to increased competition and the negative impact of unfavorable economic conditions.
Sears Holdings also announced its fourth-quarter projections for the period ending Feb. 2.
The company expects net income for the quarter to be $350 million to $470 million, or $2.59 to $3.48 per share -- down from earlier analyst estimates of $4.43 per share. The company projects its full-year income to be $744 million to $864 million, or $5.13 to $5.96 per share, while analysts had estimated $6.64 per share.